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Christian Company has a bonus agreement which provides that the general manager shall receive an annual bonus of 10% of the net income after bonus and tax. The income tax rate is 30%.
The general manager received P280,000 for the current as bonus.
Question 1: What is the income before bonus and tax?
a. 4,280,000
b. 4,000,000
c. 2,800,000
d. 3,720,000
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